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Journal of the Academy of Marketing Science

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01.03.2014 | Original Empirical Research

Do institutional investors pay attention to customer satisfaction and why?

Erschienen in: Journal of the Academy of Marketing Science | Ausgabe 2/2014

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Abstract

Extant marketing, accounting, and finance research has neglected to examine the relevance of customer satisfaction information for institutional investors, despite their potential importance. This study develops and supports a framework suggesting that firms with positive changes in customer satisfaction are more attractive to transient institutional investors than to non-transient institutional investors. We also find that the impact of customer satisfaction on transient institutional investor holdings is contingent upon firm intangible asset intensity, product-market demand uncertainty, and financial market volatility. In addition, transient institutional investor holdings at least partially mediate the effects of changes in customer satisfaction on firm abnormal return and idiosyncratic risk. Thus, transient institutional investor investments represent a mechanism through which customer satisfaction affects firm value.

Vorheriger Artikel Cobranding arrangements and partner selection: a conceptual framework and managerial guidelines

Nächster Artikel Delusive perception—antecedents and consequences of salespeople’s misperception of customer commitment

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We thank two anonymous reviewers for the suggestion to include this summary.

We thank one anonymous reviewer for this competing hypothesis logic.

A fund manager’s reputation is hurt less if everyone makes the same bad decision than if only the manager makes the bad decision. A risk-averse manager will run with the pack instead of going out on a limb with a contrarian strategy, even if the manager has information that the contrarian strategy has the higher probability of being correct (Scharfstein and Stein 1990).

Return is already a change of stock price, so the buy-hold return for quarter t is essentially a change in stock price or firm value triggered by the ACSI announcement in quarter t. We exclude quarter t when investigating the change in firm risk because the risk calculation in quarter t can be contaminated by the ACSI announcement. A comparison of risk between quarters t + 1 and t − 1 more cleanly shows the impact of changes in ACSI on firm risk.

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Titel: Do institutional investors pay attention to customer satisfaction and why?
Publikationsdatum: 01.03.2014
Erschienen in: Journal of the Academy of Marketing Science / Ausgabe 2/2014
Print ISSN: 0092-0703
Elektronische ISSN: 1552-7824
DOI: https://doi.org/10.1007/s11747-013-0342-9

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